Example of an Ascending Broadening Wedge
The ascending broadening wedge is considered to be a reversal pattern, and is bearish in nature. Though the pattern is typically a signal of reversal, continuation of the uptrend is still possible.
When present as a continuation pattern, the wedge will still slope to the upside, but the up-slope will typically be found as a pullback within a downtrend. When present as a reversal, the pattern will slope to the upside within an uptrend. Regardless of continuation or reversal, ascending broadening wedges are always bearish in nature.
When present as a continuation pattern, the wedge will still slope to the upside, but the up-slope will typically be found as a pullback within a downtrend. When present as a reversal, the pattern will slope to the upside within an uptrend. Regardless of continuation or reversal, ascending broadening wedges are always bearish in nature.
